Gold prices experienced notable fluctuations last week. Starting the week at US$2,722 per ounce on Monday, spot gold saw a rally in Asian and European sessions, reaching US$2,757.80, its all-time highest price, on Wednesday. It then encountered resistance from North American traders, dropping to US$2,710.90 on Thursday, as doubts over the precious metal’s short-term outlook emerged. This was followed by a weekend rally.
It’s currently trading at US$2747.60 an ounce.
This back-and-forth reflects the divided sentiment. Middle-East tensions and uncertainty surrounding the US presidential election are driving investors to seek security in safe-haven assets. Some experts are bullish, expecting continued upward movement driven by central bank buying, inflation concerns and ongoing geopolitical risks, while others predict a pullback, citing the likelihood of short-term profit-taking and overbought conditions.
Economic indicators in the coming weeks could shape gold’s direction. The US employment report and other key data releases are expected to influence sentiment. A clear break above $2,760 could signal the start of another bullish phase, while a dip below $2,700 might trigger more conservative trading.